Marks & Spencer Group plc : Persistent bid rumours
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 371.1 | GBX 0 | GBX 340 | -100% |
In May the company has recorded its first drop in annual profits for the last three year. Since this date analysts polled by Thomson Reuters are less confident on the results for the next two years.
The share rose 18% from bottom level reached in July. Speculation boost the share, which now is in bullish trend supported by moving averages. In weekly data, since 2011 the share is trading in a neutral range between GBp 307 / 383. We advise attention on the confirmation of rumors. However we suggest a long position in order to surf the wave of speculation, and also because we think, at current price the share is not overvalued. The denied of the rumors shouldn’t improve the bearish trend.